This is the best guide to how to buy and sell online stocks in Norway. On aksjebloggen, you will learn all there is about buying stocks in the Norwegian market and how to come up with strategies to become a successful trader, as well as information on which online broker you should trust. You will also get tips on some strategies that you can apply to get more benefits and perform better in the Norwegian stock market.
It does not matter if you are new to the Norwegian stock market or have been a member for a while, this article will be useful for you if you wish to make a good trade and become an investor. Keep reading to get all the knowledge and tips that you will need to make your first investment in the Norwegian stock market.
Why invest in stocks?
Investing to earn money had stayed for long before we started the current monetary system. In today’s times, it is believed that one of the fastest and safest ways to earn money, both short-term and long-term, is through the stock market. Investing money in the stock market can be beneficial in many ways, and by using these tips given below, you can reel in more money.
Establish an annual status
It is advisable to settle an annual stock sale status. November can be a good choice to get an insight of this year’s losses and gains, and how this will relate to any tax payments.
Whether you have any profits or losses that you want to measure? What will this mean for when you will have to pay in taxes? And will it be beneficial for you to wait until next year to act on the profits or loss? Besides that, it can also be a good time to introspect whether there are some new tax rules that have been implemented from the start of the year so that you avoid any troubles later.
On some stock market sites, you have to find tax yourself, while on others it is shown automatically to you.
Read more about stocks
If you wish to become an experienced investor and perform well trading, we advise you to start reading more about online stock trading and educating yourself about the way it works in Norway.
The more you educate yourself, the more skills you will have about the stock market and be able to grow as an investor and get good gains as well as sales. Besides that, it will also make your investment more profitable because you will know things about it.
Through these tips, you can learn more about how to invest money more carefully in the market. If you are a new beginner and have not invested ever before, or just starting, we advise you to read books.
If you are interested in learning through reading material, we do advise you to read these three books. These books will be useful to you on your journey to be a good investor:
- The Intelligent Investor by Benjamin Graham
- The Little Thing of Behavioral Investing by James Montier
- Shares and Stock Trading by Stig Mikalsen
It is advisable to consider that the market is many times affected by the media, so you may wish to put a little time aside to spend reading news and browsing the internet about finance and economics. We advise you to go through E24, Dagens Næringsliv and Finansavisen. These will be great for you to get to know about Norway’s stock market.
Trade stocks based on your strategy and research
Simply investing in stocks on the basis of recommendations that you get by reading online, or in the daily newspaper or on social media like Facebook or Instagram is a quite risky stock market strategy.
You are free to use advice and tips as motivation, but we think that you should only invest with the brokers and companies that you are familiar with. If you do not know what you are getting into, do not buy.
This type of advice definitely applies to everyone who decides to invest into shares themselves, and particularly to the day trading sector, where people can make the most money by being loyal to particulars and companies that they know well and have a good vibe with. Consider the fact that you are in a stock market which is full of other investors. If they know more about the trades than you, there is a risk that you will end up losing your shares.
If you plan on buying or selling shares, but do not have enough information about the company, we advise you to spend plenty of time on researching everything from the operation that takes place, what type of sector and the market the company works in and what the possibilities are available.
Only when you have a lot of information and knowledge about the company should you invest, and then you will also be able to have an advantage compared to all those who do not understand the matter as well.
You should always have a clear plan in your mind when you invest in equity investments. If you constantly keep on changing your plans and strategies, you will have a much larger risk of losing money on these shares. New investors especially trip and fall into the trap by not following their researched strategy in periods of great ups or downs.
Create a diversified portfolio
To reduce the risk of large losses when buying shares, it is recommended that you have a diversified portfolio. This will mean that you invest in different limited companies that represent different industries, sectors, and regions. If you decide to invest only in a limited company, or an industry, you may risk losing large amounts from your investments if this industry experiences a large fall in value.
Below you can see an example of a diversified portfolio consisting of 25% international stocks, 25% in defensive stocks (which often pay dividends), 25% in stocks with moderate risk and the potential for a good increase, and 25% in stocks that are riskier but can give a very good return. In other words, you should add more stocks to your portfolio to minimize the risk of loss.
Tax on the sale of shares
If you are going to start buying shares, it is important to get a proper overview of which rules apply to shares and taxes in Norway. It is your responsibility to ensure that this is done correctly, and it is foolish not to take advantage of any tax benefits and / or deductions.
It is also extremely important that losses or gains in connection with investments are reported correctly to the authorities. Here you can read what you need to know about shares and taxes in Norway.
The main rule for income in Norway is that all income is taxable. This also includes income from shares and other investments. You also receive a deduction for losses on equity investments, but only when you realize the loss, i.e. sell the shares. You must therefore pay tax on the sale of shares with a positive return, while the sale of shares with a loss is deductible.
You may be interested in: “How do I begin to invest in the stock market?”